Banks play a very important role in the economic development of a country, and the world, in general. The Spanish economy, in particular, is only emerging from a perennial slump that started with the global financial crisis in 2008. Spanish banks have been on the forefront of this turnaround, thanks to a combination of stringent banking rules and practices and unique accounting procedures. For instance, Spanish banks are required to have higher capital provisions in relation to other western countries. This article delves into the top ten Spanish banks with the highest assets base and profits.
1. Banco Santander
According to the banker, a global consultancy firm specializing in tracking banks and their overall financial performance, this financial giant had assets worth a whooping $195 billion as of May 2015. Its pre-tax profit of $12.93 billion was also the highest in the country, indicating the highest return on capital (ROC) among Spanish banks.
The Spanish lendertakes second place, thanks to a strong asset base worth around $766 billion. It was also the second most profitable bank in 2015, with profits estimated at $4.8 billion. The bank also has a global presence and has been a consistent, stand-out performer.
It operates domestically, as a subsidiary of financial savings bank. Reported profits stood at nearly $971 million as of May 2015. One of its major strength is the high number of branches and agents it has nationally.
4. Banco Sabadell
The bank has in the last couple of years engaged in a major expansion plan by acquiring subsidiaries and affiliates, thus strengthening its position as one of the strongest brands in Spain. In 2015, the bank posted net profit of nearly $790 million. Judging by the banks net profit for the first six months of 2016 which stands at $473 million, the lender looks set to earn more profit this year.
5. Banco popular
Founded in 1926, the bank is one of the largest in Spain and takes 5th spot with a reported pre-tax profit of $453 million. It’s headquartered in Madrid and is also listed on the London stocks exchange.
6. Banca march
The lender posted net profits of $300 million for the 2015 year, thanks to growth in the bank’s loan book and improving economic conditions in Spain since 2013.
7. Caixa bank
Unlike other top Spanish lenders, Caixa bank has traditionally restricted operations only within Spanish soil, but that has not stopped it from reaping big. Its estimated assets stand at $411 billion and pretax profits of $245 million as of May 2015.
8. Banco Pastor, S.A
It was founded in 1776 and is one of the oldest banks in the country. It’s listed as the fifth largest bank in Spain in terms of assets market capitalization and customer deposits. With over 650 branches throughout Spain, the bank continues to generate profits on a consistent basis.
9.Deutsche bank Spain
The international lender clinches 9th spot in Spain, thanks to an aggressive marketing campaign since its entry into the Spanish market.
10. Barclays Spain
The lender takes 10th spot in profit rankings within the Spanish market. The bank is evidently not doing very well in spin compared to its performance in England and the Middle Eastern countries.
The Spanish economy seems to be recovering since 2013 and the above results of major banks in Spain offer some proof. Experts have predicted even better performance in the coming months.